Arizona Paycheck Calculator
Estimate your Arizona take-home pay — federal tax, Arizona's flat 2.5% state income tax, Social Security, and Medicare all included.
Arizona payroll tax overview
Arizona uses a flat income tax rate of 2.5% on all taxable income — one of the lowest flat rates among states that tax wages at all. There are no brackets to climb through, so the same rate applies whether you earn $40,000 or $400,000.
Arizona does not add any state-specific payroll deduction on top of income tax, and there are no city or county income taxes — your total withholding is federal tax + Social Security + Medicare + the flat 2.5% state rate.
Worked example
A single filer earning $75,000/year in Arizona, paid biweekly:
| Item | Per paycheck | Annual |
|---|---|---|
| Gross pay | $2,884.62 | $75,000.00 |
| Federal income tax | ≈ $313.00 | ≈ $8,140.00 |
| Social Security | $178.85 | $4,650.00 |
| Medicare | $41.83 | $1,087.50 |
| Arizona state tax (2.5%) | ≈ $72.12 | ≈ $1,875.00 |
| Net pay | ≈ $2,278.82 | ≈ $59,247.50 |
Local income context: how Arizona compares
According to the most recent U.S. Census Bureau American Community Survey, Arizona's median household income is $81,486 — just above the 2024 national median of $81,604. Arizona's income has climbed alongside its population boom, with Phoenix's rapid growth in semiconductor manufacturing (including major new Intel and TSMC facilities) and logistics adding higher-paying jobs to an economy historically centered on tourism, retail, and retirement communities.
Median household income reflects a full household (often two earners), while the calculator above estimates take-home pay for a single individual's salary — so it's a useful benchmark for context rather than a direct comparison, but it helps illustrate how a given salary stacks up against typical earnings in Arizona.
Frequently asked questions
How Arizona compares to other states
At 2.5%, Arizona has one of the lowest state income tax rates in the country among states that tax wages at all — only a handful of flat-tax states come close, and true no-tax states like Texas or Florida remain the only way to avoid state income tax entirely. Arizona's low, simple flat rate is a meaningful part of why the state has attracted significant population growth from higher-tax states in recent years.
Arizona cost-of-living context
Cost of living in Arizona varies between the fast-growing Phoenix metro area and smaller cities like Tucson or Flagstaff. While Phoenix-area housing costs have risen substantially in recent years, they generally remain below those of major coastal metro areas, meaning Arizona's low tax rate and moderate cost of living combine to make take-home pay stretch further than in many other states.
More frequently asked questions
Arizona minimum wage context
Arizona's statewide minimum wage is set above the federal minimum and includes scheduled annual adjustments for inflation. A small number of Arizona cities, including Flagstaff, set their own local minimum wage above the state rate — worth checking separately if you're entering an hourly rate into this calculator.